LEGAL ISSUES IN INTERNATIONAL TRANSPORTATION
THE LIABILITY OF INTERNATIONAL AIR CARRIERS- Airlines have a number of responsibilities in relation
to their passengers, cargo and luggage. International laws provide a world-wide system of standards and
rules for air travel. In particular these laws provide minimum liability limits for the carriage of
passengers, cargo and luggage in the event of death, injury, damage, delay or loss.
The Montreal Convention of 1999- The Montreal Convention 1999 (MC99) establishes airline liability
in the case of death or injury to passengers, as well as in cases of delay, damage or loss of baggage
and cargo. It unifies all of the different international treaty regimes covering airline liability that had
developed haphazardly since 1929. MC99 is designed to be a single, universal treaty to govern
airline liability around the world.
International Carriage- means (except where the Convention is applicable) Carriage in which,
according to a contract of Carriage, the place of departure and, the Destination or Agreed Stopping
Place, are situated in two or more countries. As used in this definition, the term “country”, which is
equivalent to “state”, shall include any territory subject to its sovereignty, suzerainty, mandate,
authority or trusteeship.
Jurisdiction- Jurisdiction is a practical authority given to a legal body to deal with legal matters by
implications. In Public International Law, the concept of jurisdiction has a strong link with sovereignty.
Jurisdiction allows State for sovereign independence which they pass on with the global system of equal
States stating the laws related to persons or activities in which they have a legal interest.
Air Carrier’s Liability for Death or Bodily Injury-The carrier is liable for damage sustained in case of
death or bodily injury of a passenger upon condition only that the accident which caused the death or
injury took place on board the aircraft or in the course of any of the operations of embarking or
disembarking.
Accident- an undesirable or unfortunate happening that occurs unintentionally and usually results in
harm, injury, damage, or loss; casualty; mishap.
Embarking or Disembarking- Embark means “putting passengers in a plane or on a boat.” Disembark is
its opposite. When you disembark, you leave a ship or a plane. Disembarkation or debarcation is the
process of leaving a ship or aircraft, or removing goods from a ship or aircraft.
Limitations on Liability for Death or Bodily InjuriesSpecial drawing rights- Special drawing rights (SDR) refer to an international type of monetary
reserve currency created by the International Monetary Fund (IMF) in 1969 that operates as a
supplement to the existing money reserves of member countries. Created in response to concerns
about the limitations of gold and dollars as the sole means of settling international accounts, SDRs
augment international liquidity by supplementing the standard reserve currencies
Compensable Damages-Compensatory damages are money awarded to a plaintiff to compensate for
damages, injury, or another incurred loss. Compensatory damages are awarded in civil court cases
where loss has occurred as a result of the negligence or unlawful conduct of another party.
Third-Party Suits- is one that is brought forth against another party or person in regards to injuries that
are suffered by the plaintiff.
The Montreal Convention applies only to claims against air carriers. It does not prohibit or govern claims
brought against third parties, such as the manufacturer of a defectively designed or built airplane, the
company that serviced or maintained it, the owners or operators of the airport, private security firms,
retailers or vendors operating within airport facilities, or other passengers. These cases are primarily
governed by ordinary tort law of the state or jurisdiction in which the case is heard.
Air Waybills and Air Cargo Losses- An air waybill (AWB) is a document that accompanies goods shipped
by an international air courier to provide detailed information about the shipment and allow it to be
tracked. The bill has multiple copies so that each party involved in the shipment can document it. An air
waybill (AWB), also known as an air consignment note, is a type of bill of lading. However, an AWB
serves a similar function to ocean bills of lading, but an AWB is issued in non-negotiable form, meaning
there's less protection with an AWB versus bills of lading.
Consignor vs. Consignee- The consignor is the sender of a consignment while the consignee is the
receiver of the consignment. The consignee may be a buyer or just an agent who acts on behalf of the
consignor. The ownership of the goods or the consignment remains with the consignor until the goods
have been paid for in full by the consignee.
Master air Waybill- Master air waybill (MAWB) is a transport document, which is used in air shipments,
issued and signed by the air cargo carrier or its agent, generally on a pre-printed carrier’s air waybill
format, evidences the terms and conditions of the carriage of goods over routes of the carrier(s).
House air waybill- House air waybill (HAWB) is a transport document, which is used in air shipments,
issued and signed by a freight forwarder, generally on a natural air waybill format, evidences the terms
and conditions of the carriage of goods as specified by the freight forwarder.
International Air Transport Association- IATA is an international trade organization, created over 70
years ago by a group of airlines. Today, IATA represents some 290 airlines in 120 countries comprising
82% of total air traffic. The organization also represents, leads and serves the airline industry in general.
Baggage Losses- Airlines are responsible for repairing or reimbursing a passenger for damaged baggage
and/or its contents when the damage occurs while the bag is under the airline’s control, according to
the U.S. Department of Transportation’s Aviation Consumer Protection division.
Delay- a situation in which something happens later than it should. Travelers will appreciate the new
provisions of The Montreal Convention, which make airlines liable for Delays in transporting passengers,
baggage, or cargo. However, the carrier is not liable if it proves that it and its Servants and agents took
reasonable measures to avoid the Damage or that it was impossible for it or them to take Such
measures. Liability for delays is limited to 4,694 SDRs per passenger (2009).
Time Limitations- All legal actions against air carriers for damages must be brought within two years of
the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or
from the date on which the carriage stopped. Where baggage or cargo are damaged, the carrier must be
notified immediately and no later than seven days from the date of receipt in the case of checked
baggage and 14 days from the date of receipt in the case of cargo. Claims for damages for delayed
baggage or cargo must be made in writing and at the latest within 21 days from the date on which the
baggage or cargo was actually delivered.
Maritime law- maritime law is a body of law that governs nautical issues and private maritime disputes.
Admiralty law consists of both domestic law on maritime activities, and private international law
governing the relationships between private parties operating or using ocean-going ships. While each
legal jurisdiction usually has its own legislation governing maritime matters, the international nature of
the topic and the need for uniformity has, since 1900, led to considerable international maritime law
developments, including numerous multilateral treaties.
General maritime law- General Maritime Law — a common law concept whose origin is rooted in
historic sea codes and requires the owner of the vessel to provide the entire crew with transportation,
wages, room and board (maintenance), and medical services (cure) for the duration of the voyage. This
condition applies even if the illness or injury is not job related. Further, the crew member may sue the
owner of the ship for additional damages by citing the unseaworthiness of the craft.
Rhodian Law- came from the customs and practices of the sea trade. Although there is no known
written record of Rhodian law, it has been referred to in the written writings of other maritime codes
that it influenced. It was so important in its time that some of its concepts were incorporated into
Roman code law.
maritime courts- Admiralty court, also known as maritime court, is a court that exercises admiralty or
maritime jurisdiction and hears civil cases related to admiralty or maritime law.
Navigable waters- navigable water, in the broadest sense, a stream or body of water that can be used
for commercial transportation. When, as in the early common law, the term is restricted to waters
affected by tides, it denotes only the open sea and tidal rivers.
Vessels in Navigation. Vessel in Navigation — a watercraft or any type of machinery that is intended for
use in navigable waters as a means of transportation. This is one of the qualifications that an injured
worker must establish in order to make a claim under the Jones Act.
Maritime Torts. Maritime law torts is a term covering cases where injury, loss or damage is caused to a
person or their interests by another party’s action or negligence. In this light, maritime tort applies to
cases where injury, loss or damage is caused to a person or their interests in a maritime setting. This
gives maritime tort law a very broad range of coverage, particularly as no malice or premeditation is
required to designate liability under the tenets of tort law.
Maritime Contracts- A Maritime contract is an agreement pertaining to the operations, navigation,
maintenance and repair or provisioning of a vessel. Contracts between vessel owners and charterers
concerning the water transportation of goods are technically known in admiralty law as “contracts of
affreightment”. The charterer agrees to pay a freight charge for cargo space. The voyage, amount of
cargo space, and time of delivery will all be covered by the contract. One common type of contract is the
“voyage” charter. This type of charter usually concerns the hire of a vessel ‘s entire cargo space for one
or more specific voyages.
The Hague Rule- Hague Rules, in maritime law, international code defining the rights and liabilities of a
carrier. Introduced at the International Law Association meeting in Brussels in 1921, they were adopted
first as clauses in bills of lading and after 1923 as the Brussels Convention on Limitation of Liability.
The Carriage of Goods by Sea Act. The Carriage of Goods by Sea Act ("COGSA")[1] is a United
States statute governing the rights and responsibilities between shippers of cargo and shipowners regarding ocean shipments to and from the United States. It is the U.S. enactment of the
International Convention Regarding Bills of Lading, commonly known as the "Hague Rules"